State of the Union

Obama on the Economy: It's Awesome! It's Spectacular! It's Squeezing People to Death!

The income inequality obsession leads to whiplash.

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Ow, my neck! That was the feeling of whiplash listening to President Barack Obama lavish praise on the current state of the economy while refusing to let go of the progressive canard that income inequality is killing us. Here's how the section of his speech talking about the domestic work market started:

Let me start with the economy, and a basic fact: the United States of America, right now, has the strongest, most durable economy in the world. We're in the middle of the longest streak of private-sector job creation in history. More than 14 million new jobs; the strongest two years of job growth since the '90s; an unemployment rate cut in half. Our auto industry just had its best year ever. Manufacturing has created nearly 900,000 new jobs in the past six years. And we've done all this while cutting our deficits by almost three-quarters.

Anyone claiming that America's economy is in decline is peddling fiction. 

And then we immediately end up here:

What is true?—?and the reason that a lot of Americans feel anxious?—?is that the economy has been changing in profound ways, changes that started long before the Great Recession hit and haven't let up. Today, technology doesn't just replace jobs on the assembly line, but any job where work can be automated. Companies in a global economy can locate anywhere, and face tougher competition. As a result, workers have less leverage for a raise. Companies have less loyalty to their communities. And more and more wealth and income is concentrated at the very top.

All these trends have squeezed workers, even when they have jobs; even when the economy is growing. It's made it harder for a hardworking family to pull itself out of poverty, harder for young people to start on their careers, and tougher for workers to retire when they want to. And although none of these trends are unique to America, they do offend our uniquely American belief that everybody who works hard should get a fair shot.

I about fell out of my chair from the shift in gears, there.

In reality, he is not being positive enough about the economy. The obsession with income inequality is obscuring the truth: More of the allegedly "vanishing" middle class is moving up the economic scale than down. The concentration of more money at the top includes more Americans, not fewer.  In December, the Pew Research Center put together a report that was titled "The American Middle Class is Losing Ground." But its own numbers showed that headline to be untrue. The decreasing size of the middle class is because of people moving both down and up in economic standings. And more moved up than down.

I'll repost their big chart to the right showing the demographics of who is doing better under this system of allegedly increasing income inequality. Notice that the select, rarefied demographic known as "ALL" saw net gains in income mobility, as have the more selective demographics of blacks, Asians, and women. Millennials are the ones getting screwed (by their wealthy elders) and Hispanics, and those statistics, Pew explained, reflect a rising share of lower-earning immigrants in the adult population. U.S.-born Hispanics saw improvements in their standing as well.

Obama is absolutely correct to say that anybody claiming that our economy is decline is peddling fiction. He no doubt was referring to Donald Trump. But Hillary Clinton and Bernie Sanders are more than happy to try to drive forward that deceptive income inequality talking point to get votes.

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38 responses to “Obama on the Economy: It's Awesome! It's Spectacular! It's Squeezing People to Death!

  1. So are we in a recovery or is there need for more free shit?

    1. We are in a recovery. Unfortunately, the money from the recovery is going to rich people, so we need to tax the pants off them and give out free shit.

  2. I think this is the Winter of our Recovery.

    1. The Great Recession of our nation, which made life like a long winter, has been turned to a summery contentedness now that I have helped forge a recovery.

    2. My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can’t believe how easy it was once I tried it out. This is what I do..

      Clik This Link inYour Browser….

      ? ? ? ?www.WorkPost30.com

  3. Clearly we are not doing enough to help the elderly.

  4. “The economy is pumping along quite nicely, despite my best efforts.”

  5. Labor participation rate down, average wages down, reinflating the credit bubble in auto and student loans, national debt skyrocketing, retiring Boomers starting to draw their money out of the productive economy into the consumptive… yeah the economy’s just swell. Stock market is heading into a crater as well, not that the stock market really matters to the broader economy, but back when it was getting pumped by free Fed money the asswipe in chief seemed to think it was the entire economy.

    This is with capital fleeing here from even more decrepit economies overseas. What happens when that dries up?

    1. Happy fun time?

    2. You’ve got it backward. There is no money coming in. It’s all going out because CORPORASHUNS!!

    3. Could somebody tell me of a single time during his two terms when more people were in the workforce than the day before Obama came into office?

  6. My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can’t believe how easy it was once I tried it out. This is what I do..

    Clik This Link inYour Browser….

    ? ? ? ? http://www.workpost30.com

  7. Not only is it doing well in objective terms (14 million new jobs compared to zero 2001-09), inflation dead, USD strong, energy prices down, PPP up, etc – it has done that despite the smoldering crater of -8.9% GDP the Bushpigs left it in.

    1. Starting from such a low point economically, you’d expect positive statistics just by random chance alone. Which Obama policies do you credit with helping to recover the economy?

      1. The Supervisory Capital Assessment Program, his tax cuts/stimulus, HARP/HAMP, saving the US auto industry, JOBS Act, all-of-the-above energy program, deficit reduction later, stocking the Fed with doves, peace dividends, for starters.

        Not very libertarian. Pure Keynesian.

        1. Everything on that list is at best debateable, but peace dividends is laugh out loud funny.

          1. You liked sinking $2 trillion into Iraq for nothing?

            1. No, I didn’t. Did BO get that money back for us? Did he stop dumping our money into useless kinetic actions that don’t solve anything and actually create new problems?

            2. How much more has Obama sunk into Afghanistan, Syria, Lybia, et. al?

              Not that it matters, because no matter how many times it’s explained to you that being against Obama doesn’t mean we were for Bush (the opposite being the case seeing as how Obama has continued every fucking policy Bush came up with, and then some).

              Go fuck yourself demfag.

    2. “USD strong”

      A plugged toilet raises all turds.

      1. Wow! The USD is so strong that it’s almost back to the level it was at when obozo entered office!

        Turd is impressive…

        1. bullshit. It is 20% stronger now.

          DXY proves it.

          1. Or the currencies it is measured against are 20% weaker.

          2. Could you tell me of a single time during his two terms when more people were in the workforce than the day before Obama came into office?

          3. We already have a big trade imbalance with Europe and Asia. Can you explain in what sense a “strong US dollar” is a good thing for the US?

    3. The labor force participation rate has dropped greatly under Obama and it hasn’t recovered. Whatever numbers you concoct for “job creation”, they were obviously not enough. Low inflation and a strong US dollar may be nice for investors, but they are not advantageous for regular Americans. Furthermore, both of those were due to factors far beyond Obama’s control.

  8. Hey, remember “Win The Future”? WTF ever happened to *that*?

  9. Nowhere in the world is there a greater concentration of wealth than Washington, DC.

  10. “Obama is absolutely correct to say that anybody claiming that our economy is decline is peddling fiction.”

    The phrase is “in decline,” but hey, why pay proofreaders when you can’t even pay real writers?

    Anybody who says everything is awesome is peddling fiction. And anybody who says it on a libertarian site is peddling pulp.

  11. and I’d bet that most of those categories that lost ground (at the bottom of the chart) Those 18-29, single, and with less than a 4 year degree are the ones who are losing ground – suffered from too high of a minimum wage.

    When lefties tell me that the MW has had no effect on the unemployment rate (the folks looking for work) I point them to the labor participation rate of those under 25, which has cratered since 1990.

  12. If you’re an economist, you distinguish between a good economy and income inequality. You don’t lump them together. Most economists look at GDP growth to assess good economy. You can also tell by the growth of the stock markets, which have been doing quite well during the last four years. What’s causing concern for most people is almost all the growth goes to the top .025 of people, who own most of the stocks……

    1. Ops, I actually meant the top one quarter of one percent, which is actually .0025, not .025.

    2. Why would any economist (let alone a good one) give a warm shit about income inequality? An economist should understand that people are vastly different in their intelligence, ability, ambition, productivity, and success rate; if he doesn’t grasp that basic fact, he has no business calling himself an economist.

      Krugman and Reich are hacks. Reich is clueless, Krugman knows he’s full of shit and does it anyway (he won his awards back when he was a free market guy).

  13. We actually need better guages of good economy than GDP growth or U1 unemployment rate, which most people agree on. More accurate gauges are the U6 unemployment rate and the “labor force participation rate”. GDP growth is no longer a good guage of a good economy, when all the growth goes to the top .0025 of people.

  14. my neighbor’s half-sister makes $83 every hour on the computer . She has been without a job for 9 months but last month her payment was $17900 just working on the computer for a few hours. why not try this out

    +++++++++++++++++ http://www.Wage90.Com

  15. My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can’t believe how easy it was once I tried it out. This is what I do..

    Clik This Link inYour Browser…….

    ? ? ? ? http://www.WorkPost30.com

  16. Obama: “The future is so bright, you gotta wear shades. But while some people can afford D&G sunglasses, others have to make due with Walmart specials. Inequality! Free D&G sunglassses for everybody!”

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